Many Early Projections Indicate that U.S. Home Prices Will Rise in 2024 - Flipping Profits Increase

• Various sources are projecting home prices to rise between 0.8% and 6.4% within or through 2024

  • Continued low home inventory is the main reason many projections remain above flat or declining levels

Analysis: The 6.4% gain projected by Zillow is too optimistic right now. Other sources that project a decline in prices may be too conservative. With many sources projecting mortgage rates to decrease a bit in 2024 and low inventory of for-sale housing stock to continue, I think it’s safe to project slight increases in home prices. As of now, I would safely expect a national average price appreciation range of 1% - 1.5% in 2024.

House-Flipping Profits Continue to Rebound

• Second quarter 2023 data shows house-flipping profits continued to rebound

  • Gross profit on a typical house increased to $66,500—up from $56,350 the previous quarter

    • Return on investment rose for the 2nd straight quarter to 27.5%

Analysis: Investors are being more selective on properties to flip. Some sellers are attracted to all-cash quick closings that don’t include today’s evolving financing complications from conventional buyers, and many sellers no longer have “sky high” thoughts on their home value like they did 1-2 years ago. On the buyers’ side of flipped homes, many are often choosing (and even competing) to purchase from non-contingent sellers (like flippers) with less strings attached to close the deal on a turn-key home. This has resulted in an uptick of profits in which most markets have continued to see modest price appreciation.

Put These Insights to Work in Your Next Deal

Have a deal in hand?

We are ready to partner with you to provide the financing to help you succeed.

Contact us today to get started.